Product bundling: How to bundle products for more sales [2024]
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Want to boost your 2024 sales? Try the savvy product bundling strategy. Learn how to create attractive packages that increase the perceived value of your items, tempting customers to spend more.
This guide is perfect for innovators, creators, and ecommerce businesses aiming to increase their average order value with a smart product bundling strategy.
Main takeaways from this article:
Product bundling is a sales strategy where multiple products are sold as a package, often at a discounted price, to increase the average order value.
Implementing product bundling can boost the average order value, reduce marketing and distribution costs, improve customer buying experience and loyalty, efficiently clear inventory, and provide a competitive edge in the market.
Several bundling types exist, including pure, mixed, cross-sell, upsell, gift, subscription, seasonal, BOGO, inventory clearance, value, sample, thematic, build-your-own, and new product launch bundling, each offering unique advantages for businesses and consumers.
A step-by-step guide on selecting products for bundling, pricing and naming bundles, promoting bundles, and monitoring sales performance.
Gelato provides an on-demand production service that simplifies product bundling for ecommerce businesses by allowing easy creation, promotion, and fulfillment of product bundles without the need for inventory management, thereby enhancing sales and customer satisfaction.
What is product bundling?
Product bundling is a sales technique that involves selling multiple products as a package deal or single unit to increase the average order value (AOV). Usually, when complementary products are bundled together, customers get the bundled products at a discounted price compared to the cost of individual products listed in the package. Additionally, individual products could also be bundled at checkout as a cross-selling and upselling strategy.
Types of product bundling
Understanding the many types of product bundling might seem complex. But don't worry; we're going to discuss various product bundling examples in detail to help you find the best one for your business.
Pure bundling
In a pure bundles strategy, products are offered only as a collective package and are not available for separate purchase. This allures customers to purchase a more significant number of items from your online store at once by presenting a valuable deal or bundle discount.
Imagine purchasing a smartphone and finding that it uniquely includes extras like headphones and a protective case. Pure bundling is all about boosting the perceived value through exclusive package deals.
Mixed bundling
Mixed bundling is a clever marketing strategy where businesses offer individual products and their bundled versions simultaneously. This flexible approach allows customers to pick and choose, enhancing their buying experience while potentially increasing the company's average order value.
Cross-sell bundling
Think about cross-sell bundling as the suggestive salesperson you encounter in a physical store. For example, selling a smartphone and coupling it with a protective case or screen protector.
It's all about providing additional value by recognizing and promoting the products that naturally complement each other.
Upsell bundling
Upsell bundling is a smart technique used by businesses to increase their sales. It involves packaging a higher-priced or top-tier product with a regular product to motivate customers to upgrade their purchase.
This strategy improves sales and enhances the customer's perception of value. It's a win-win deal: customers believe they're getting a good bargain, and businesses see an increase in their revenue.
Gift bundles
Gift bundles are a thoughtful way to offer consumers a curated selection of products that could make an ideal gift. They are essential, especially during festive seasons or special occasions like birthdays, anniversaries, Valentine's Day, etc.
These come at a bundle price, offering an irresistible value proposition to potential buyers.
Subscription bundles
Subscription bundles are a strategic method used by businesses to ensure continued customer engagement and retention. In this scheme, customers pay a recurring fee to receive a group of products or services consistently. It's an excellent way to keep the products or services' perceived value high and promote repeat business.
Seasonal bundles
Seizing the seasonality trend, businesses can cleverly craft bundles that resonate with particular events or times of the year when specific products enjoy a surge in popularity. Envision autumn, laden with pumpkin-spiced treats, or the onset of a new year prompting a fitness gear bundle.
That's the power of seasonal bundles. They offer your products a platform to shine by creating a timely, relevant connection with customers, boosting their motivation to purchase.
BOGO bundles
Buy-One-Get-One (BOGO) bundles have grown immensely popular among consumers in recent years. By offering an extra product at no cost or a significantly reduced price, businesses create an irresistible proposal. It's a joyful surprise for customers, triggering impulse buys, while retailers enjoy boosted sales volume and rapid inventory turnover.
Inventory clearance bundling
Inventory clearance bundling presents a smart approach to reducing the stockpile of less popular or excess inventory. By pairing these products with hot sellers in a bundle, businesses can maintain an appealing package that entices customers to purchase more. It's a win-win, giving your customers more value while streamlining your inventory.
Value bundling
Value bundling is all about smartly combining high-value and low-value products into one package and selling them as a single unit. This increases the overall perceived value for your customers, which in turn helps boost your sales and average order value.
Sample bundling
A clever business approach known as sample bundling involves grouping new items or a diverse set of flavors together for consumers to try. This practice not only offers customers a chance to experience an array of products, often at a concessional rate but also elevates their exposure to the wider selection of offerings from the company, potentially fostering greater interest.
Thematic bundles
Thematic bundles craft a harmonious story by combining products that share a common theme, emblem, or motif. Be it a holiday season, a cultural event, or a customer’s personal interest, thematic bundles hit the sweet spot by catering to what resonates with the consumers. Not only does it boost sales, but it also enhances the customers’ shopping experience, giving them a sense of personal connection.
Build-your-own bundles
Ever wished you could select your own choice of items for a bundle? With 'Build-your-own bundles', you can do just that. This personalized approach allows customers to pick and choose their favorite products to form a unique package that suits their needs and preferences. It provides a fun and engaging shopping experience, enhancing user satisfaction and paving the way for increased sales.
New product launch bundling
When launching a new product, 'new product launch bundles' present an excellent strategy to generate buzz and significantly boost sales. It's all about coupling your new item with existing popular offerings in a compelling package. This initiative is not only about driving sales volume but also about creating anticipation and excitement around your new product.
Advantages of product bundling
Let's explore how product bundling strategies can benefit your business in the long run.
1. Increase average order value (AOV) and profits
Boosting your Average Order Value (AOV) can be a turning point for your business. By using product bundling effectively, you encourage customers to spend more with each purchase. This strategy is a great way to increase income from each transaction.
2. Decrease marketing and distribution costs
Adopting product bundling is hugely beneficial for businesses, leading to considerable savings on marketing and distribution costs. This method simplifies product promotion, eases the shipping process for multiple products, and boosts profit margins - delivering a dual advantage for the seller and the buyer.
3. Enhance buying experience and customer loyalty
Enhancing the buying experience leads to stronger customer loyalty. When you bundle products, you simplify the shopping process and help customers save money, making customers feel like they are getting a good deal. This leads to repeat purchases, turning occasional shoppers into loyal customers.
4. Get rid of dead stock
A great way to handle unsold items is product bundling. By pairing these items with other products, their appeal increases, enticing customers to buy them. It's a smart way to clear out inventory, lessen waste, and manage your storage space better.
5. Gain a competitive edge
Product bundling can help your business stand out by offering great value in a competitive market. This powerful strategy can help you gain more customers, increase your brand's reputation, and significantly grow your business.
How to create product bundles step-by-step
Want to use product bundling to increase sales? Here's a simple guide to creating effective product bundles to improve your business performance in 2024.
1. Identify products to bundle
Start by picking out products that go well together to boost perceived value. For example, if you sell handmade backpacks, pair them with extra straps or locks. Use a data-driven approach to select the most relevant pairs, which can help increase sales.
2. Price and name your bundle
Once you've decided on the products for your bundle, you need to set a price and come up with a compelling name. The aim is to show customers how much they're saving with bundle pricing while keeping your profits intact. It's key to strike a balance between attracting customers and preserving your earnings.
3. Promote and sell your bundle
Your product bundle is ready, and now it's time to tell the world about it. Success lies in a well-planned marketing strategy. Whether it's through social media ads, email marketing, or leveraging influencers, spread the word about your bundle. With enticing descriptions, show your customers what they stand to gain from this bundle deal.
4. Monitor sales
Don't forget it's essential to keep tabs on how your product bundles are selling. What's selling well? What's not? Study the data of your product bundles, identify profit-driving combinations, and use these insights to fine-tune your strategies for greater success. Remember, being adaptable is key.
Meet expert bundler, Jessie, of JJ Design House
There’s nothing better than learning through a seasoned expert, especially an ecommerce store owner like Jessie Gagatko, of JJ Design House. Specializing in framed art and gallery walls, Jessie conceived JJ Design House from her love for travel, nature, design, color, and home decor. She believes that every room in your home should be a reflection of your personality and style.
“I strive to create art that's not only visually stunning but also creates a mood that's fun, peaceful, or even quirky at times.”
Creating beautiful art that paired well together not only made it easier for her customers to create a coordinated look and bring a room together, but it also saved them time, without the need to search for individual pieces that share a cohesive look or theme.
“Bundling with Gelato has allowed my shop to easily transition my bestselling printable gallery wall to offering printed poster sets.”
Offering printed wall art bundles in the second half of 2022 helped increase her sales by 45%, compared to the first half of the same year. Additionally, her average order volume during that same period increased by 16%.
“Gelato has allowed me to offer printed wall art to customers at an affordable price and with great quality. I can confidently offer my products to customers worldwide with the certainty of reliable delivery times and exceptional quality.”
Boost product bundle sales with Gelato
If you're running an ecommerce operation, product bundling can greatly enhance your sales. Gelato offers streamlined, user-friendly solutions for this.
Selling bundles with Gelato
The first step is to establish a product bundle on your ecommerce platform. You can do this if you already have an existing product bundle, or you can create a new one. It can be a single product or a combination of items. An example of a simple bundle might be a set of three framed floral art posters.
After deciding on the products to include in your bundle, the next step is to upload each item into Gelato. Start by choosing your store from the "store section" and create each product using Gelato's straightforward interface. This step involves crafting your artwork, deciding on product mockups, defining the specifics of the product, and pricing it. You can choose whether to hide individual products from customers browsing your store by controlling the "show product to store visitors" option. Once done, publish your product. Repeat these steps for all items in your bundle.
Lastly, activate the "import not connected orders" feature. This feature helps manage your bundled product orders from your ecommerce store via Gelato. Orders will show up in your Gelato order list marked as 'not connected'. You're then free to decide if the order should be fulfilled by Gelato. With these steps mastered, you're all set to start selling product bundles!
So, why not start maximizing your sales and enhancing the customer experience today with Gelato's convenient and efficient product bundling feature? Take charge of your ecommerce strategy, and let us help you increase your profits and stay ahead of the competition.
Sign up for Gelato now and explore pricing tiers to sell product bundles!